Ramirent signs merger deal worth €970 million with French company

The Board of Directors is telling shareholders it's a good deal, and urging them to accept the cash offer from Loxam.

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File picture of Ramirent heavy machinery / Credit: Ramirent FB

Finnish construction equipment company Ramirent has signed a merger deal with Europe’s biggest machine rental company Loxam, an agreement worth €970 million.

The price that the French company paid represents €9 per share, which was almost double the value-per-share of Ramirent on the Helsinki Stock Exchange when it closed on Friday afternoon.

Although the merger agreement has been signed, it still has to be approved by shareholders and the Board of Directors is recommending that shareholders accept the cash purchase offer that Loxam is making.

“The price offered by Loxam offers an attractive cash bonus to our shareholders. With its history of acquisitions and business integration, I believe that Loxam offers Ramirent a good home” says Ulf Lundahl, the Chairman of the Board.

Ramirent has around 2900 employees and the turnover last year was just over €700 million, while Loxam is Europe’s biggest machine rental companies in the construction industry sector.

Under the terms of the deal Ramirent will remain as a standalone brand.